With Cable TV at M.I.T., Who Needs Napster? AWESOME. "The quirk in the law that makes the system legal, Mr. Winstein said, has much to do with the difference between digital and analog technology. The advent of the digital age, with the possibility of perfect copies spread around the world with the click of a mouse, has spurred the entertainment industry to push for stronger restrictions on the distribution of digital works, and to be reluctant to license their recording catalogues to permit the distribution of music over the Internet.

So the M.I.T. system, using the analog campus cable system, simply bypasses the Internet and digital distribution, and takes advantage of the relatively less-restrictive licensing that the industry makes available to radio stations and others for the analog transmission."